BILL ANALYSIS |
C.S.H.B. 1701 |
By: Parker |
Investments & Financial Services |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
Interested parties contend that the written acknowledgement that certain business entities who provide non-advisory services to political subdivisions under the Public Funds Investment Act are required to execute stating that the entity has implemented reasonable procedures and controls to prevent unauthorized investments is too broad in scope for certain business entities. C.S.H.B. 1701 seeks to reduce confusion by revising the types of business entities that are subject to the acknowledgement requirement and certain content of the acknowledgement.
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CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
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RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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ANALYSIS
C.S.H.B. 1701 amends the Government Code to change the entities to which a written copy of the investment policy adopted by the governing body of certain investing entities subject to the Public Funds Investment Act is required to be presented from any person offering to engage in an investment transaction with such an investing entity, or an investment management firm under contract with such an investing entity to invest or manage the entity's investment portfolio, to any business organization so offering. The bill redefines "business organization," for these purposes and the purposes of certain other requirements and prohibitions regarding such an organization that offers to engage in an investment transaction with such an investing entity, as an investment pool or such an investment management firm that has accepted authority granted by the investing entity under contract to exercise investment discretion in regard to the investing entity's funds. The bill specifies that a business organization's required written acknowledgement to such an investing entity that the organization has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the entity and the organization that are not authorized by the entity's investment policy is not required to account for the extent such authorization relates to investment transactions of the entity that are not made through accounts or other contractual arrangements over which the business organization has accepted discretionary investment authority.
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EFFECTIVE DATE
September 1, 2017.
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COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 1701 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and formatted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.
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